On Tuesday, shares of pharmaceutical company Alexza Pharmaceuticals (NASDAQ:ALXA) are soaring, up over 66% in afternoon trading after the company announced it has entered into a definitive agreement to be acquired by Spain-based Ferrer Pharma Inc.
Under the terms of the deal, Ferrer Pharma will buy Alexza for $0.90 per share in upfront cash, representing a 67% premium to ALXA’s closing share price on May 9, 2016. Shareholders will also be granted contingent value rights to receive up to $35 million in cash payments based on the achievements of specific milestones.
"We see Ferrer as the ideal company to acquire Alexza as we continue to strive toward global commercial success with ADASUVE and to re-energize our Staccato-based product pipeline," said Thomas B. King, President and CEO of Alexza. "Over the past four years, we have come to appreciate their professionalism, passion, dedication and commitment to Alexza's technologies, products and people.
"We are pleased that Alexza, the company that created and developed ADASUVE and the Staccatotechnology, will be part of Ferrer and we look forward to working with our new Alexza colleagues to continue creating significant value for patients worldwide. We firmly believe that the Staccatotechnology will change the lives of patients with severe mental and neurological disorders. At the same time, it will help healthcare professionals to improve their management in the increasingly digitalized and personalized healthcare context," said Jordi Ramentol, CEO of Ferrer.
The deal is expected to close in the second quarter of 2016, and is subject to customary closing conditions.
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